Nigeria's Flour Mills shares jump most in 14 months

Feb 04, 2016

Shares of Flour Mills of Nigeria, the country’s biggest miller by market value, rose the most in 14 months as a stake sale to Lafarge Africa last year buoyed profit.

                                             

The shares jumped 10% to 19.88 naira (less than $1) at lunch on Wednesday, the biggest advance since December 3 2014. Net income for the nine months to December rose to 19 billion naira (about $95.3m) compared with 3.3 billion naira a year earlier, the company said.

Flour Mills’ profit “arose from exceptional income of about 24 billion naira from the stake sale,” which is a big leap in a period of economic downturn, said Efemena Esalomi, a consumer analyst at Vetiva Capital Management. Lafarge Africa in November agreed to purchase Flour Mills’ 30% holding in United Cement of Nigeria.

Africa’s biggest economy is facing a squeeze in consumption as the nation of more than 170 million people suffers from a slump in crude oil prices. The economy probably grew 3% last year, the slowest pace since 1999, according to the International Monetary Fund.

Flour Mills’ shares have declined 4.4% this year compared to a 17% retreat by the 179-member Nigerian Stock Exchange All Share Index.

 

- Bloomberg News

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